Management & Labor

FEMA Ordered to Pay New Orleans $10M for Katrina Wages

The U.S. Federal Emergency Management Agency has been ordered by a federal arbitration panel to reimburse New Orleans for more than $10 million in wages paid to city emergency personnel after Hurricane Katrina.
September 6, 2013
 

The U.S. Federal Emergency Management Agency has been ordered by a federal arbitration panel to reimburse New Orleans for more than $10 million in wages paid to city emergency personnel after Hurricane Katrina.

FEMA is obligated to pay the Louisiana city $10.8 million to cover one-third of the salaries paid to police, fire and medical personnel during the four months after Katrina hammered New Orleans in 2005, a three-judge panel of the U.S. Civilian Board of Contract Appeals said in an August 29 decision reviewed by Reuters.

New Orleans had asked the CBCA, which resolves contract disagreements between executive branch agencies, to review a May 2012 determination by FEMA that it would not pay the first-responder salaries.

FEMA officials had previously said the agency would reimburse New Orleans for one-third of the regular pay of critical personnel so the city could avoid layoffs. But years later, a FEMA representative told city officials by email that agency protocol prohibited it from making such payments.

Join the Discussion

After you comment, click Post. You can enter an anonymous Display Name or connect to a social profile.

More from Management & Labor